Foreign funds seen heading for exit in wake of scrapped deal

Kuala Lumpur

MALAYSIA'S equities market could see a reversal of foreign funds spooked by Putrajaya's shock termination of a major real estate deal with a Malaysian-Sino consortium, potentially adding to their risk-averse stance, analysts cautioned.

The Kuala Lumpur Stock Exchange closed 0.78 per cent lower after the market was put on the back foot by the surprise cancellation by TRX City Sdn Bhd of a 60 per cent stake sale in Bandar Malaysia Sdn Bhd to Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corporation Sdn Bhd (CREC).